2Q 2017 FINANCIAL & OPERATING RESULTS August 7, 2017
2Q RESULTS AND 2H UPDATE 1. 2Q highlights 2. Infrastructure update 3. A&D update 4. Hedge Profile 5. Outlook for 2H17 and beyond 6. 2Q financial update 7. 2Q operational update 8. Appendix 3
2Q HIGHLIGHTS 2Q17 vs. 1Q17 LOE/BOE Production Cash G&A/BOE EBITDAX 20% 13% Excluding G&T 16% 9% 7% Including G&T Strong second quarter results attributable to organic growth in the Midland Basin, full…
DELAWARE BASIN WATER INFRASTRUCTURE UPDATE Salt Water Disposal DELAWARE WATER DISPOSAL SYSTEM RSP owns 8 operated SWD wells with 120,000 BWPD capacity expected as of mid-August 2017 Newly drilled wells permitted up to Gathering…
DELAWARE BASIN GAS GATHERING AND TRANSPORTATION UPDATE Gas gathering provided by Targa DELAWARE GAS GATHERING SYSTEM (NYSE: TRGP) Processing provided by Targa and Energy Transfer Partners Gathering system Gas Plant Targas Loving…
ACQUISITIONS & DIVESTITURES UPDATE Acquired leasehold and mineral interests in the Delaware LOCATOR MAP OF 2Q17 ACQUISITIONS & TRADES Basin Total aggregate purchase price of 228 MM, closed 3Q 6,000 net leasehold acres and 4,500 net…
HEDGE PROFILE RSP continuing to protect 45+ floor into 4Q17 and 2018 Opportunistically added 12 MBo/d and 10 MBo/d, respectively, in recent crude rally HEDGE CONTRACT DETAIL Crude Oil (Bbl, /Bbl) 3Q17 4Q17 3Q17 4Q17 1Q18 2Q18 3Q18…
OUTLOOK FOR 2H17 AND BEYOND Continued focus on corporate-level returns and capital efficiency, not growth for growths sake Strong execution YTD, reiterate 2017 production, unit cost, and capex guidance Look to closely…
2Q17 ACTIVITY OVERVIEW During 2Q17, RSP drilled 22 and GROSS OPERATED ACTIVITY completed 18 operated HZ wells 10 Midland, 8 Delaware completions 56 53 Expect to drill 52-56 and complete 48-53 in 2H17 Deferring 6-8 2H17 completions…
2Q17 FINANCIAL RESULTS Production growth of 20% and EBITDAX growth of 9% over prior quarter despite lower oil prices LOE/Boe (excl. G&T) 13% lower than prior quarter, driven by Midland Basin efficiency gains and infrastructure gains D&C…
CAPITALIZATION AND LIQUIDITY SUMMARY 900MM elected commitment under the Companys revolving CAPITALIZATION TABLE credit facility with 1.1B borrowing base and 2.5B maximum lender commitments ( in millions) 6/30/2017 Key financial…
FULL YEAR 2017 GUIDANCE FULL YEAR 2017 GUIDANCE SUMMARY COMMENTARY 1H17 Reiterate full year 2017 production, unit cost and capex 2017 Guidance Range Actuals guidance ranges Production Revised completion guidance to 80-85 gross…
PRODUCTION PER DEBT-ADJUSTED SHARE GROWTH (THROUGH FY17E) RSP consistently ranks 1 or 2 in production per debt-adjusted share growth FY 2017E based on consensus research estimates for RSP and peers as of July 31 250% 209% 200%…
2Q OPERATIONAL UPDATE
MIDLAND BASIN POSITION 46,500 CONTIGUOUS FOOTPRINT + STACKED RESOURCE net acres 1,750 2,890 net drilling locations(1) 200 MMBoe Proved Reserves(2) 1.0 1.6 BBoe Total Resource 3,400 Potential(1) (1) Based on range from base…
MIDLAND BASIN INVENTORY 60% of drilling in 2018 targeting platinum inventory with CURRENT SPACING ASSUMPTIONS expected IRR 50% at 50 oil Base Spacing Mid - Upside Spacing 50% estimated weighted average return for 2018 drilling…
MIDLAND BASIN ACTIVITY UPDATE Excellent and consistent well results confirming enhanced completion design and asset quality RECENT WELL RESULTS MIDLAND BASIN ACTIVITY Lateral Length IP30 IP30 / Well Name Zone (Feet) (BOED) 1,000…
DELAWARE BASIN POSITION 47,100 CONTIGUOUS FOOTPRINT + STACKED RESOURCE net leasehold acres 4,500 net royalty acres(1) 2,410 Lea net drilling locations(2) New Mexico Texas 80 MMBoe Proved Reserves(3) 5,700 1.8 BBoe Total…
DELAWARE BASIN INVENTORY 65% of drilling in 2018 targeting platinum inventory with CURRENT SPACING ASSUMPTIONS expected IRR 50% at 50 oil Base Spacing (Avg. Wells/Section) 65% estimated weighted average return for 2018 drilling…
DELAWARE BASIN ACTIVITY UDPATE Excellent well results reflecting improvements in drilling and completion designs RECENT WELLWELL RESULTS RESULTS DELAWARE BASIN ACTIVITY Lateral Length IP 30 IP30 / % Well Name Zone (Feet) (BOED)…
OFFSET OPERATORS CONTINUE TO DE-RISK EASTERN EDGE Solid results from offset operators along eastern edge of Delaware Basin further de-risk RSPs Winkler County acreage WELL RESULTS EASTERN DELAWARE BASIN ACTIVITY Deepest IP24…
ONGOING DELINEATION OF MULTIPLE ZONES In addition to industry focus on Wolfcamp A zone, strong results from 5 other target horizons across RSP position WELL RESULTS NON-WOLFCAMP A DELAWARE BASIN ACTIVITY Lateral Cuml Length Prod…
2ND BONE SPRING UPDATE: 2 DISTINCT LANDING ZONES Ludeman 505H (4,400 LL) has produced 147 MBoe…
DELAWARE BASIN 3D & SURFACE MICROSEISMIC BRUNSON D MICROSEISMIC Purchased 108 sq mi 3D data set from Fairfield Nodal (at time of Silver Hill acquisition) Acquiring new 137 sq mi 3D data set from TGS (Oct. 2017 delivery) Monitoring…
DELAWARE BASIN WELL PERFORMANCE IMPROVEMENT 2017 wells drilled to date outperforming 2015 / 2016 vintage wells UPPER WOLFCAMP WELL PERFORMANCE BY VINTAGE 180,000 100 *Results normalized to 7,500' 160,000 90 80 140,000 70…
APPENDIX
DELAWARE BASIN WOLFCAMP C & D ACTIVITY Wolfcamp C&D have been drilled by WPX, EOG, Concho, Devon & Cimarex Comparable log response on RSP leasehold Similar to other Wolfcamp zones, expect trend of increasing oil percentage as you…
FULL DEVELOPMENT UNDERWAY ACROSS MIDLAND BASIN ACREAGE RSP has several units approaching CROSS BAR RANCH SECTION 17 JOHNSON RANCH SECTION 10 full development of primary zones across breadth of acreage position 1st Prod Start…
ADJUSTED EBITDAX AND ADJUSTED NET INCOME RECONCILIATION Reconciliation of Net Income (Loss) to Adjusted EBITDAX (in thousands) Three Months Ended June 30, Three Months Ended March 31, 2017 2016 2017 Net income (loss) 31,090 (9,801)…
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